LG Energy Solution is operating in-house company in company (CIC) ‘KooRoo’ and ‘AVEL’ to expand their battery business. KooRoo and AVEL will start their Battery as a Service (BaaS) and Energy as a Service (EaaS) businesses, respectively.
BaaS is a business that provides various services based on data generated throughout the life cycle of a battery, and EaaS is a business that helps power grid efficiency by using energy storage system (ESS) and renewable energy resources.
KooRoo promotes a battery swapping station (BSS) related business. BSS is a service that greatly enhances convenience by using a swapping method instead of charging the battery pack for an electric two-wheeled vehicle. KooRoo promotes the development of exclusive battery packs for and stations for BSS. In the future, the collected usage data will be used to expand the electric two-wheeled vehicle ecosystem.
AVEL promotes energy aggregation (EA) business. They will start the integrated management of the renewable energy power grid using ESS, focusing on Jeju Area. In the future, they plan to develop a system that can accurately predict the amount of renewable energy generation and manage the energy stored in the ESS.
In particular, LG Energy Solution has prepared various institutional arrangements for independent operation of their CIC. At the beginning of the establishment, CIC will operate as a completely independent organization under the Chief Strategy Officer (CSO). They will also prepare a differentiated compensation system and plan to consider a separate, unconventional compensation plan when the company is split.
Young-soo Kwon, Vice Chairman of LG Energy Solutions, said, “We hope that CIC will not be afraid of failure and will be able to increase future customer value through innovative thinking and challenges. In the future, we will strive to become a company that grows together with individuals and companies.”
By Staff Reporter Ji-woong Kim (jw0316@etnews.com)